The concentration of ownership by the very wealthy is supported by a financial system that enables them to acquire income-producing capital basically on credit whereas no such financing strategy is available to the mass of the population. A solution lies in creating a system whereby every individual has the right and opportunity to acquire income-producing … Read More
This short web article introduces how an ESOP works, rules, and tax advantages.
This technical note explores the many different forms of equity compensation. Equity compensation, defined as compensation that provides for the delivery of equity securities, aligns employees’ incentives with shareholder value driven by a company’s stock price. Equity compensation is used extensively to attract and retain key employees. However, the types of equity compensation differ in … Read More
This technical note explores the many different forms of equity compensation. Equity compensation, defined as compensation that provides for the delivery of equity securities, aligns employees’ incentives with shareholder value driven by a company’s stock price. Equity compensation is used extensively to attract and retain key employees. However, the types of equity compensation differ in … Read More
Businesses interested in transitioning into employee ownership are often presented with a structural dilemma: convert into an ESOP or a cooperative? Go for the democratic worker control and participation of a cooperative, or the tax benefits of an ESOP? In this article the author describes how he helped a company, Sun Light & Power, combine … Read More
The “ESOP-Owned S corporation” structure offers truly remarkable advantages that can transform a business into a tax-exempt, for-profit entity. An S corporation whose stock is held in an ESOP, of course, pays no federal income tax (and little or no state income tax) at the corporate level…
When structured and maintained properly, the 100 percent ESOP-owned S Corporation can be a powerful force of employee ownership…
The consolidation and sale of some beloved brands to Big Beer has raised eyebrows and piqued new questions about the industry’s identity. The good news is the industry is still expanding with more than 4,000 U.S. craft breweries, over 100 in San Diego alone, and there is an opportunity for employee stock ownership plans (ESOPs) to play a larger role in the industry’s future.
Like many ESOPs, the Macfadden Employee Stock Ownership Plan was established as a means of transitioning ownership from the company’s founder to its employees. Just over 12 years later, the Macfadden ESOP now owns 100 percent of the company…
Floating rate notes (FRNs) are bonds that have a variable coupon that is pegged to a reference rate, typically LIBOR, plus a fixed spread. There are several variations of FRNs, but this article will focus on those utilized to fulfill IRC Section 1042 requirements.
This Critical Mass Radio Show discusses why, when and how business owners should choose the ESOP path as the correct succession strategy…
With all the news about company bankruptcies, increased government regulations, higher equipment costs and economic uncertainty, some motor-carrier owners are looking for options…
In this 20-minute radio interview, Martin Staubus, executive director, Beyster Institute at the Rady School of Management is interviewed by host, Bill Black on ExitCoachRadio.com.
Any business owner who evaluates their succession options without investigating the concept of an employee stock ownership plan will be making a mistake. What is an ESOP, and how does it work?
With ESOPs now formed almost entirely at very healthy companies – and many of those enjoying the unique cash flow benefits of operating as ESOP-owned S corporations – a growing number of these companies have become the predators of the M&A jungle…
What can be done to reverse the economic disparity in our nation and restore prosperity for all? This paper lays out a policy reform that will help restore the link between economic growth and the earnings of workers so that the recovery re-establishes a prosperous middle class. The reform encourages firms to develop broad-based incentive compensation systems that link employee earnings to the performance of the firm. This reform would give employees access to the capital-related earnings of their companies comparable to that of the senior executives who run these firms.
Employee Ownership Australia and New Zealand (EOA) was formed in July 2011 out of the Australian Employee Ownership Association (AEOA). EOA has the same principles as those shared of the AEOA’s founders. When AEOA was formed by 20 companies in 1986 its principles were to be a member-focused, non-profit association. Its purpose was to assist members with their employee ownership (or co-ownership) plan, employee engagement and involvement and employee participation levels
Mid-Missouri Energy is a farmer-owned cooperative created to take advantage of the growing interest in ethanol as an automotive fuel.
Technically, an ESOP is a retirement plan and serves the purpose of accumulating retirement savings for the company’s employees. In practice, however, they can act as a cash buyer of private company stock, thus creating a source of liquidity for the company’s owners.
The first ESOP (employee stock ownership plan) came into being in 1956. This article describes the origin and history of the ESOP and explains why ESOPs will increasingly become the business succession tool of choice for many owners of privately held businesses.
The project subjects the existing regulatory regime for employee share ownership plans in Australia – in tax, corporate and labour law – to technical and empirical scrutiny. This research report presents findings from a survey of employee share ownership practice in ASXlisted companies.
The project subjects the existing regulatory regime for employee share ownership plans in Australia – in tax, corporate and labour law – to technical and empirical scrutiny. This report considers the objectives and current practice in this area and notes that employee ownership levels tend to be lower for unlisted entities than for listed entities. It also examines the regulatory obstacles to such ownership and makes recommendations for reform to facilitate employee ownership in this area.
Samuel Zell’s acquisition of the Tribune Company in December 2007 using an S corporation employee stock ownership plan (S ESOP) brought S ESOPs to national attention.
Staff members at Vasey Commercial Heating & Air Conditioning in Zionsville are company owners as part of an employee stock ownership plan.
Oxera was commissioned by HM Revenue & Customs (formerly the Inland Revenue) to examine the impact of tax-advantaged share schemes on UK company performance (whereby companies reward their employees by granting them shares, or share options, as part of their remuneration package).